Regulations on the Labor Management of the Foreign-Funded Enterprises
Article 1 The regulations are formulated in line with State laws and administrative regulations to guarantee the legal rights and interests of the foreign-funded enterprises (FFEs) and their employees and establish, maintain and develop stable and harmonious relations between the FFEs and the employees.
Article 2 The regulations are applied to the Sino-foreign joint equity ventures, Sino-foreign cooperative ventures, solely foreign-funded enterprises and Sino-foreign limited companies established within the People’s Republic of China and their employees.
Article 3 The labor administrative departments of the people’s governments at county and above level exercise supervision over the FFEs in accordance with this set of regulations with regard to their use and training of personnel, and the personnel’s wages, insurance and welfare, as well as their working safety and hygiene conditions.
Article 4 The statute and system of the FFEs must not go against the State laws and administrative regulations.
Article 5 The FFEs may decide by themselves the time, conditions and ways of the employment and the number of personnel they employ in line with relevant State laws and administrative regulations.
The FFEs may recruit employees from the employment services which have confirmed by the labor department at the localities of the FFEs but under the approval of the labor administrative departments may also recruit their employees directly or from other regions.
The FFEs must not recruit the employees who are still employed by other employers and are forbidden to use child laborers.
Article 6 The FFEs should employ their Chinese employees within China; whereas there is a real need to employ foreign personnel or personnel from Taiwan, Hong Kong and Macao regions, the employment should be made in line with relevant State regulations and with the approval of the local labor administrative department, and through relevant formalities such as the acquirement of employment certificates.
Article 7 The FFEs should establish certain training programmes for their employees. Those who are required to do technical work or to have special skills must receive training and be certified capable for the job before they assume the posts. A special programme for training must be drawn and used in line with relevant State regulations.
Article 8 Labor contracts are concluded in written form between individual employee and the FFEs. Trade unions (elected worker representatives if no such unions are available) may conclude collective contracts with the FFEs on behalf of the employees through consultations and negotiations with regard to matters like their remuneration, working time and vacation, labor safety and hygiene condition and insurance and welfare.
The content of the labor contracts and the collective contracts should conform with relevant State laws and administrative regulations in content.
Article 9 The labor contracts should be appraised and verified at the local labor administrative department within one month after they are signed. The signed collective contracts should be reported to the local labor administrative departments for the record. The collective contracts shall become effective whereas the labor administrative departments do not raise any different views within 15 days from the date when they receive the text of the contracts concerned.
Article 10 Labor contracts terminate when their operation terms expire or conditions on which both parties agree to terminate the contracts appear. Labor contracts may also be extended under agreement of both parties.
A labor contract may be revised upon agreement of both parties through consultation and due formalities should go through for the change. The content of the changes in the contract may be decided by both parties of the contract.
Article 11 The FFEs or the employees may terminate the labor contracts in one of the following cases:
(1) Parties of the contract reach an agreement for the termination through consultations;
(2) A FFE may terminate the labor contract during the trial employing period of a certain employee when the employee is proved not up to the qualifications for recruitment, fails to carry out the contract, seriously violates labor discipline and the lawful statute of the enterprise, or has been convicted to forced labor or other pronounced guilty criminal punishment; and
(3) An employee may terminate the labor contract if forced to work for the FFEs under violent treatment, threat, or imprisonment or other means of restricting personal freedom by the FFE; or if the FFE fails to carry out the labor contract or violates the State laws, administrative regulations and infringes upon the legal rights and interests of the employee.
Article 12 FFEs may terminate the labor contracts after soliciting the opinion of the trade union in one of the following cases, but the employees should be notified in written form 30 days in advance:
(1) An employee inflicts an ill or injury not on post and thus cannot do the original work or other assignments by the FFE after the medical treatment period expires;
(2) An employee can still not do the work after training or reassignment;
(3) A contract fails to be carried out due to changes of conditions after the contract is signed and both sides cannot reach an agreement through consultations on changing the contract; and
(4) 0ther matters which are set in laws and administrative regulations.
Article 13 The employer cannot terminate the labor contract when an employee is certified of losing or partly losing work ability due to occupational disease or injury at post, or in regular medical treatment for illness or an woman employee is pregnant or is enjoying maternity and lactation. Whereas an employee asks to terminate the labor contract due to occupational disease or becoming disabled because of work the enterprise should pay the social insurance agency the reemployment settlement fee for those who becoming disabled because of work in accordance with the stipulations of the local government.
The time limit for medical treatment of an employee who is ill or gets injured not because of work is set according to the current regulations.
Article 14 The wage policy of the FFEs should follow the principle of equal pay for equal work. Wages of the employees should be raised year by year on basis of the economic development of the FFEs. Wage standards of the employees should be decided through collective negotiations by the FFEs according to the guideline promulgated by the local people’s government of the labor administrative department.
The minimum payment for a legal working hour of an employee in FFEs must not be lower than the standard for the local minimum payment.
Article 15 The FFEs must pay the employees cash wage in time and adequately at least once every month and withhold and pay the income tax for the employees.
Article 16 The FFEs should make account of the wages of the employees in line with relevant regulations and report the account to the local labor administrative department, financial department, statistics department and the enterprise’s authoritative department in written form.
Article 17 FFEs must join in old-age, unemployment, medical, on-job injures, child-bearing and other social insurance for their employees in accordance with relevant State regulations, and pay full premium to the social insurance institutions in time a